The BitMine stock price has rebounded in the past few weeks, moving from the year-to-date low of $17.30 in February to the current $23.30. This rally may continue in the foreseeable future as Ethereum rebounds and a double-bottom pattern forms.
Tom Lee is accumulating Ethereum aggressively
On-chain data shows that BitMine continues to accumulate ETH tokens aggressively. Data shows that the company likely acquired another 100k coins worth over $233 million.
The report showed that funds moved from BitGo to make these acquisitions. They moved through three newly created wallets.
Data compiled by CoinGecko shows that the company has been accumulating these tokens aggressively in the past few months.
It has now bought 315k tokens in the last 30 days, bringing its total holdings to 4.9 76 million. As such, if the new buying is confirmed, it means that it will cross the 5 million mark.
If the accumulation trend continues, the company will conclude its purchases in the coming months.
BitMine is different from Michael Saylor’s Strategy in that its goal is to own 6 million tokens. It then aims to stake all these coins using the recently launched MAVAN product and earn about 3% annual return.
The 6 million tokens will therefore generate an annual return of 180k coins, which are worth $420 million at the current price.
If the price rises to $5,000 as some analysts expect, the staking revenue will be worth over $900 million a year, a notable amount for a company that has less than 10 employees.
Tom Lee then aims to use these funds to make strategic investments in other companies. He recently invested $200 million in MrBeast’s company, an investment that will have a strong return in the next few years.
He also aims to continue repurchasing the BMNR stock. Just recently, he announced that he will boost the repurchase authorization from $1 billion to $4 billion.
BMNR stock has formed a bullish chart pattern
BMNR stock chart | Source: TradingView
The daily chart suggests that the BitMine stock price is about to rebound. It has formed a double-bottom pattern at $17 and a neckline at $23. This pattern is one of the most common bullish reversal signs in technical analysis.
The stock has also flipped the Supertrend indicator from red to green, which is a bullish sign. Also, the stock has jumped above the 50-day Exponential Moving Average (EMA).
Therefore, the most likely BMNR stock forecast is bullish, with the next key target being the 23.6% retracement point at $28.73. A move above that level will point to further gains to the 50% retracement point.
Ethereum price prediction
ETH price chart | Source: TradingView
BitMine’s stock recovery will depend on the performance of Ethereum, its main investment. The daily chart shows that the Ethereum price has formed an ascending triangle pattern and is now on the upper side, which also coincides with the 23.6% retracement point.
Like BitMine, Ethereum has flipped the Supertrend indicator from red to green and moved above the 50-day Exponential Moving Average (EMA).
Therefore, a combination of these patterns means that the coin will continue soaring in the near term. The main target to watch will be the 38.2% Fibonacci retracement level at $2,960. Such a move will bring the value of BitMine’s Ethereum holdings from the current $11.59 billion to over $14.7 billion.
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